What is off and retroactive payroll?

Off-cycle and retroactive payroll are terms related to adjustments in payroll processing. Off-cycle payroll refers to unscheduled payroll runs outside the regular pay schedule, often necessary for urgent payments, bonuses, or corrections. Conversely, retroactive payroll involves making adjustments to previously issued payrolls to account for changes like salary corrections or updates, ensuring accuracy for past periods of work. Both off-cycle and retroactive payroll processes are essential for maintaining financial accuracy and meeting unexpected payment requirements in organizations.